FTC Approves Final Order Settling Charges Against Software and Rent-to-Own Companies Accused of Computer Spying

Following a public comment period, the Federal Trade Commission has approved nine final orders settling charges that seven rent-to-own companies and a software design firm and its two principals spied on consumers using computers that consumers rented from them. The companies used software to take screenshots of confidential and personal information, log customers’ computer keystrokes, and in some cases take webcam pictures of people in their own homes, all without the customers’ knowledge.

In settling the FTC’s administrative complaint, the respondents will be prohibited from using monitoring software and banned from using deceptive methods to gather information from consumers. The settlements will prohibit the use of geophysical location tracking without consumer consent and notice, and bar the use of fake software registration screens to collect personal information from consumers. The seven rent-to-own stores will also be prohibited from using information improperly gathered from consumers to collect on accounts. In addition, the software company, DesignerWare, and its principals, Ronald P. Koller and Timothy Kelly, will be barred from providing others with the means to commit illegal acts. All of the proposed settlements contain record-keeping requirements to enable the FTC to monitor compliance with the orders for 20 years.

The respondents, with links to the respective orders and associated public comments, are:

The Commission vote approving the final orders and letters to members of the public who commented on it was 3-0-1, with Commissioner Wright not participating. (FTC File No. 112-3151; the staff contacts are Julie Mayer, 206-220-4475, and Tracy Thorleifson, 206-220-4181.)

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.